The Real Estate Developers’ Association of Singapore (REDAS) revealed that it is ready to engage with the government to address the impending oversupply of private residential units, reported Channel NewsAsia.
Excluding executive condominiums, REDAS expects around 67,000 new homes to enter the market by 2019, or almost 20 percent of the total current stock.
Meanwhile, only 6,500 private homes changed hands in the 12 months leading to June 2015. REDAS believes the low demand and high supply of private units may lead to a downward spiral of property prices.
“We intend to engage the Government agencies to give our constructive inputs and to explain where we think the market could be trending, and that we want to avoid the hard landing,” said REDAS President Augustine Tan at its Mid-Autumn Festival Lunch.